In The News:

“The United States account deficit widened in the fourth quarter, showing another area of economic weakness for the nation. Still, signs of a housing turnaround are emerging, analysts with Capital Economics say.”

“Foreclosure filings in the United States fell 8 percent in February, the smallest year-over-year decrease since October 2010, as lenders began working through a backlog of seized properties, RealtyTrac said Thursday.”

“Details of the $25 billion settlement involving state and federal officials and the five largest servicers will change how liens are prioritized, and in turn, opponents say, will benefit banks but hurt investors.”

“AHUD Secretary Shaun Donovan announced Friday the distribution of $42 million in grants to 468 housing counseling agencies nationwide. In his announcement Friday, Donovan called housing counseling programs ‘nothing less than indispensable’.”

Today’s News Synopsis:

The FHFA reported that mortgage rates decreased to 4.62% in June, marking the third month in a row mortgage rates have been down. On a weekly basis, mortgage applications decreased 5% from a week ago. NAHB reported that the sale of new homes has only decreased 1%, thereby remaining consistently low. Elizabeth Warren of the Consumer Financial Protection Bureau will be replaced by Raj Date.

“Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer. The biggest U.S. mortgage servicer will donate 100 foreclosed houses in the Cleveland area and in some cases contribute to their demolition in partnership with a local agency that manages blighted property.”

“Even if lawmakers fail to reach a compromise on the debt ceiling, leading to a sovereign rating downgrade, the agency mortgage-backed securities real estate investment trust model is likely to remain stable and viable, according to analysts at Keefe, Bruyette & Woods.”

“Trepp, LLC estimates decreases in all types of bank loan delinquencies in the second quarter of 2011. Delinquencies are expected to decline among residential mortgages, commercial mortgages, construction loans, and commercial and industrial loans, according to Trepp’s estimates.”

“The head of Standard & Poor’s told lawmakers Wednesday the credit rating firm’s analysts don’t believe the U.S. will default on its obligations but are waiting for a “credible” plan to increase the debt ceiling by the Aug. 2 deadline that also will reduce the long-term budget deficit.”

“Home prices in 20 U.S. cities dropped in the year ending in May by the most in 18 months, adding to evidence the housing market is struggling. The S&P/Case-Shiller index of property values in 20 cities fell 4.5 percent from May 2010, the group said Tuesday. The decline matched the median forecast of 32 economists surveyed by Bloomberg News.”

“Raj Date will replace Elizabeth Warren as special advisor to the secretary of the Treasury on the Consumer Financial Protection Bureau (CFPB) when Warren departs from the agency at the end of this month, Treasury said in a statement Tuesday.”

Looking Back:

The S&P home price index suggested that prices increased by 1.3 percent from April to May 2010. 91 of the top 100 homebuying zip codes were in California. The vacancy rate for rental housing remained flat at 10.6 percent for 2010. MPF Research reported the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 2010.